The 72-Instalment Debt Settlement Scheme For Debts Owed To The AADE And E-EFKA And Its Comparison With The Out-of-Court Debt Settlement Workout

On 1 June 2026, a draft bill concerning the 72-instalment settlement of debts owed to the AADE and e-EFKA was published for public consultation. The draft bill also contains provisions on the lifting of third-party seizures imposed by the Tax Administration. In this article, we examine the eligibility requirements for the new 72-instalment settlement scheme and compare it with the relevant provisions on the out-of-court debt settlement mechanism.

Introduction

Articles 18 and 22 of the draft bill entitled “Measures to Address the Energy Crisis and Strengthen Citizens’ Disposable Income, Salary and Tax Provisions, Provisions on the Out-of-Court Debt Settlement Mechanism, Public-Sector Pension Provisions, Provisions concerning the Hellenic Gaming Commission and the Improvement of the Gaming Regulatory Framework, Provisions concerning the Hellenic Public Properties Company S.A., and Other Provisions” introduce the possibility of settling debts owed to the AADE and e-EFKA in 72 instalments. In this article, we analyse the conditions and effects of inclusion in the settlement scheme and proceed to compare it with the possibility of settling debts owed to public-sector creditors through the out-of-court debt settlement mechanism.

Eligibility Requirements for Inclusion in the Settlement Scheme

The settlement scheme covers all debts that became overdue by 31 December 2023 and are not subject to a suspension of collection. A prerequisite is that such debts were not subject to a settlement arrangement as at 21 April 2026 and have not been included in any settlement arrangement up to and including the date of submission of the application.

As regards the more specific provisions of the settlement scheme, the following apply:

• The settlement is subject to the interest rate applicable to the corresponding standing debt settlement arrangement for a period exceeding 12 months. This interest rate currently stands at 5.84% for the AADE and 5.50% for e-EFKA.

Furthermore, upon inclusion in the settlement scheme:

• The debtor is granted tax and social-security clearance certificates of limited validity.
• Criminal prosecution for the offence of non-payment of debts to the State and for the offence of non-payment of social-security contributions is suspended for as long as the settlement remains in force, while, in the event of full repayment, the punishability of the offence is extinguished. Moreover, where the conditions laid down in Article 25(5) of Law 1882/1990 and Article 8 of Law 4997/2022 are met, the criminal prosecution is discontinued.

• The taking of enforcement measures and the continuation of enforcement proceedings against claims, movable property and immovable property are suspended.

The debtor forfeits the benefit of the settlement if he or she fails to pay two consecutive instalments or delays payment of the final two instalments for a period exceeding two months.

Furthermore, specifically with regard to debts owed to the AADE, the debtor is also excluded from the settlement if he or she fails to pay or otherwise regularise in a lawful manner: a) any other debts which had already become overdue at the time of submission of the application and are not included in the settlement, within one month from inclusion in the settlement; and b) any other debts which become overdue during the term of the settlement, within three months from the expiry of the deadline for their payment.

Correspondingly, as regards e-EFKA, it is provided that the debtor forfeits the benefit of the settlement if he or she fails to pay or otherwise regularise in a lawful manner any other debts owed to the Social Security Institutions throughout the duration of the present settlement.

Comparison with the Out-of-Court Debt Workout

The table below sets out a comparison between the new 72-instalment settlement scheme and the bilateral procedure under the out-of-court debt settlement mechanism for debts owed to the AADE and e-EFKA.

It follows from the above table that the choice of the most appropriate debt settlement tool depends on the circumstances of each individual case. Thus, for example, a debtor with debts predating 2024 and with income that is high relative to the amount of his or her debts may, under the 72-instalment settlement scheme, obtain a longer-term arrangement than the one he or she would receive through the out-of-court debt settlement mechanism. Conversely, a debtor with low income is expected to obtain a settlement of up to 240 instalments through the out-of-court debt settlement mechanism, and at an interest rate significantly lower than those applicable to the respective 72-instalment settlement schemes.

By Way of Conclusion

The 72-instalment settlement scheme provides an additional option for debtors, both natural and legal persons, who wish to settle their debts. One of the advantages of the scheme is its significantly longer duration compared with the standard debt settlement scheme. However, the high interest rate, as well as the fact that only debts owed to the AADE and e-EFKA which had become overdue by 31 December 2023 are eligible for inclusion, undoubtedly significantly limits its effectiveness. Nevertheless, for debtors who are unable to access the out-of-court mechanism, for example because they had already entered into a settlement and subsequently forfeited its benefit, or who do not expect to obtain a favourable solution through the out-of-court mechanism, for example due to very high income levels, the 72-instalment scheme may constitute a viable alternative.